The Lowest Rating for an Investment Grade Bond Assigned by Moody's

question 112

Multiple Choice

The lowest rating for an investment grade bond assigned by Moody's is:

• A) Baa.
• B) A.
• C) BBB.
• D) Aa.

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Definitions:

Note Receivable

A financial asset representing a written promise for a debtor to pay a specified sum of money to the creditor on a demand or at a future date.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity, reflected in its cash flows.

Principal Collection

refers to the portion of payments received that goes towards reducing the outstanding principal balance of a loan.

Equipment Purchase

Equipment purchase refers to the acquisition of physical assets, such as machinery or tools, necessary for a company to operate and produce goods or provide services.